For every dollar large employers spend on health insurance-related costs, they get back $1.47, a figure that is expected to grow in coming years, according to a new study from Avalere Health.
The study was published June 28 and was commissioned by the U.S. Chamber of Commerce. It used publicly available data from the Bureau of Labor Statistics and the Congressional Budget Office to estimate the return on investment employer-sponsored health insurance provides employers with 100 or more employees.
Investments in insurance may include premiums, wellness programs, direct expenses and administrative costs associated with processing claims.
Three things to know:
- Employer-sponsored health insurance will provide an estimated 47 percent ROI to large employers this year and a 52 percent return in 2026.
- The growth in ROI is attributed to growing employment, a projected increase in wages, expected increase in spending on wellness programs and employee turnover rates remaining stable.
- Industries where companies made larger investments in health insurance usually resulted in larger ROI, and higher ROI is likely to be associated with higher wages.